PhRMA Hits Governors’ Ideas for Drug Price Cuts

PhRMA praised certain recommendations in a new report from the National Governors Association that lays out strategies governors are considering to lower drug prices, but questioned its suggestions on value-based pricing, a cap on Medicaid spending and more price transparency.

The association argues that the real problem, not addressed in the NGA’s Aug. 10 report, is the rapidly increasing out of pocket costs for patients, noting that spending on medicines by public and private payers has fallen to the lowest levels in years.

The NGA is proposing nine possible ways for states to reduce drug prices, such as excluding certain drugs from Medicaid coverage and leveraging the purchasing power of state programs by purchasing drugs in bulk and negotiating volume discounts.